Schlumberger challenges ONGC over Halliburton

Schlumberger has followed up on its threat to challenge Halliburton's victory in an ONGC tender to provide integrated services to five deepwater rigs for four years.

Everybody will be keenly awaiting a verdict from Independent External Monitors Pratyush Sinha, Vivek Mehrotra and former health secretary Naresh Dayal who meet on October 7. Schlumberger approached the Monitors on September 22 alleging Halliburton had submitted false information to win the tender.

Halliburton bid lowest quoting $224m against Schlumberger's $234m when ONGC opened price bids on September 16. But Schlumberger contends that Halliburton misled ONGC over the availability of an RSS directional drilling tool.

In the tender ONGC asked for a 4 and 3/4-inch tool to drill through a six-inch hole but Halliburton protested at the pre-bid in April that it didn't have such a tool available and could only provide a 5 and 1/4-inch tool. This was recorded in the pre-bid minutes.

Schlumberger asks why ONGC's technical committee qualified Halliburton's bid and gave its go ahead to open price bids? Schlumberger is also upset that a letter it sent pointing out the alleged deviation was ignored by those in charge of the tender, such as director technology and field services Shashi Shanker. An industry source further claims that Halliburton's catalogue detailing directional drilling tools available with the company doesn't mention a 4 and 3/4-inch tool at all.

Industry sources allege that Halliburton has "managed ONGC well" to ensure it wins the contract. "ONGC officials are going around telling everyone including the ministry that Schlumberger is preventing the award of a contract of national importance," we learn. Halliburton did not respond to calls made to its office by this report and an email sent to its country head based in Mumbai, Kamal Arafeh, also remained unanswered. ONGC wants the selected contractor to provide marine logistics, helicopter, logging, cementing, testing and other services needed to drill and complete 35 development wells at the KG-DWN-98/2 deepwater block. ONGC wants to award the contract soon as it needs the services urgently for two rigs it has hired: Transocean's Jack Bates and Aban Offshore's Aban Abraham. Three more rigs will be hired soon.

Industry sources allege that Halliburton has "managed ONGC well" to ensure it wins the contract. "ONGC officials are going around telling everyone including the ministry that Schlumberger is preventing the award of a contract of national importance," we learn. Halliburton did not respond to calls made to its office by this report and an email sent to its country head based in Mumbai, Kamal Arafeh, also remained unanswered. ONGC wants the selected contractor to provide marine logistics, helicopter, logging, cementing, testing and other services needed to drill and complete 35 development wells at the KG-DWN-98/2 deepwater block. ONGC wants to award the contract soon as it needs the services urgently for two rigs it has hired: Transocean's Jack Bates and Aban Offshore's Aban Abraham. Three more rigs will be hired soon.